MALI COUNTRY PROFILE
2015
© 2015 African Development Bank Group
All rights reserved.
Printed, designed and published in Côte d’Ivoire –
2015
Renewable Energy in Africa:
Mali Country Profile
T
his document is extracted from the Mali Investment
Plan produced by the Government of Mali with
support from the African Development Bank (AfDB) and
the World Bank Group under the Scaling Up Renewable
Energy Program in Low Income Countries (SREP), a
program of the Climate Investment Funds (CIF).
The views expressed in this publication are those of
the authors and do not necessarily reflect the views
and policies of the African Development Bank Group,
its Board of Governors, its Board of Directors or the
Government they represent. AfDB and its Board of
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for any consequence of their use.
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particular territory or geographic area, or by using the
term “country” in this document, AfDB does not intend
to make any judgments as to the legal or other status of
any territory or area.
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Renewable Energy in Africa: MALI Country Profile
5
Table OF contents
ACRONYMS AND ABBREVIATIONS................................................................................8
Acknowledgments............................................................................................................10
Executive Summary..........................................................................................................11
Key constraints and challenges of the energy sector...........................................................12
Key achievements...............................................................................................................13
Key Energy Figures .........................................................................................................16
I. Country Context ...........................................................................................................20
Geography and climate ......................................................................................................20
Institutional framework ........................................................................................................20
Socio economic demographic context ................................................................................20
II. Energy Sector Profile .................................................................................................24
Energy sector description ...................................................................................................24
Current status of electricity sector .......................................................................................24
Electricity demand ..............................................................................................................25
Electricity distribution ..........................................................................................................27
Traditional/Domestic energy ................................................................................................28
SWOT box...........................................................................................................................28
III. Renewable Energy Potential and Implementation...................................................32
Renewable energy potential ................................................................................................32
Solar...............................................................................................................................32
Hydro..............................................................................................................................33
Biomass/Biofuels............................................................................................................33
Wind...............................................................................................................................34
Climate change risks and opportunities for RE.....................................................................34
SWOT box...........................................................................................................................34
IV. Policy, Strategy and Regulatory Framework............................................................38
Mainstreaming of energy & RE into national development policies........................................38
Energy policies ...................................................................................................................38
National energy policy.....................................................................................................38
Renewable energy policy................................................................................................39
Electricity prices and tariffs..............................................................................................40
Rural electrification..........................................................................................................41
Policies promoting private investments for the energy sector ..............................................42
Trade barriers and trade policies (tariff and non-tariff barriers in RE technologies).................42
International agreements on energy.....................................................................................43
SWOT box...........................................................................................................................43
V. Energy Stakeholders and Institutional Framework ..................................................46
Structure of the energy sector.............................................................................................46
Ministries with energy competences....................................................................................46
Other governmental bodies with energy competences .......................................................46
Energy regulator..................................................................................................................47
Energy utility........................................................................................................................47
Other private companies......................................................................................................47
NGOs active in the area of energy.......................................................................................47
Donors/Financing institutions...............................................................................................48
SWOT box...........................................................................................................................49
VI. Energy Investments and Competitiveness in the Electricity Sector .....................52
Competitiveness of RE grid-connected generation .............................................................52
6
Renewable Energy in Africa: MALI Country Profile
Competitiveness of RE off-grid generation .........................................................................53
Prioritization of energy investments .....................................................................................54
Foreign direct investments and clean development mechanism...........................................54
Development aid for energy projects....................................................................................54
Swot box.............................................................................................................................55
VII. RE Deployment Barriers & Possible Mitigation Measures.....................................58
Barriers and mitigation measures.........................................................................................58
Main strengths.....................................................................................................................59
Appendix ..........................................................................................................................60
Main stakeholders’ websites and contacts..........................................................................60
References..........................................................................................................................60
NOTES................................................................................................................................62
7
ACRONYMS AND ABBREVIATIONS
AfDB
African Development Bank
AMADER
Mali Agency for Domestic Energy and Rural Electrification
AMARAP
Mali Radiation Protection Agency
ANADEB
National Agency for Bio-fuel Development
ANICT
API
CDM
CIF
CNESOLER
Local Authorities Investment Agency
Investment Promotion Agency
Clean Development Mechanism
Climate Investment Funds
National Solar Energy and Renewable Energies Centre
CO2
Carbon dioxide
DNE
National Energy Directorate
CREE
ECOWAS
EDM
Electricity and Water Regulatory Commission
Economic Community Of West African States
Energie du Mali SA
FER
Rural Electrification Fund
GDP
Gross Domestic Product
GHG
Greenhouse Gas
GIZ
German Technical Cooperation Agency
GoM
Government of Mali
GWh
Giga watt per hour
HV
IAEA
High voltage
International Atomic Energy Agency
IEA
International Energy Agency
IFC
International Finance Corporation
IP
Investment plan
KMS
Knowledge management and sharing
KWh
Kilo watt per hour
LV
MDBs
Low voltage
Multilateral development banks
MV
Medium voltage
MWh
Mega watt hour
NGO
Non-governmental organization
PANA
National Program of Action for Adaptation to Climate Change
8
Renewable Energy in Africa: MALI Country Profile
PEN
National Energy Policy
PNPE
National Environmental Protection Policy
PRSP
Poverty reduction strategy paper
PV
Photovoltaic
RE
Renewable energy
RGPH
RI
General Population and Housing Census
Interconnected grids
SDA
Electrification Master Plan
SIE
Energy information system
SOGEM
SREP
SSD
UNDP
UNFCCC
USD
VAT
WAEMU
WB
Société de Gestion de Manantali
Scaling Up Renewable Energy Program
Decentralized service company
United Nations Development Program
United Nations Framework Convention on Climate Change
United States Dollar
Value-added tax
West African Economic and Monetary Union
World Bank
WDI
World Development Indicators
ZEM
Multi-Sector Electrification Zone
9
Acknowledgments
This country profile is part of the work undertaken by the African Development Bank (AfDB) in the
context of its new Strategy 2013-2022, whose twin objectives are “inclusive and increasingly green
growth”. The Bank mobilizes climate finance – including from the Climate Investments Funds, the Global
Environmental Fund and other funding instruments - for its regional member countries and provides
technical assistance for them to embark on a low carbon, climate resilient development pathway.
The CIF-AfDB team coordinated by Mafalda Duarte, Chief Climate Change Specialist, has prepared
this knowledge piece. Florence Richard, Senior Climate Change Specialist, led the work with support
from Giorgio Gualberti, Renewable Energy Specialist; Leandro Azevedo and Richard Claudet, Private
Sector Specialists; Ndoundo Nigambye, Power Engineer; Angelo Bonfiglioli, Institutional Development
and Knowledge Management Specialist; and Arona Coulibaly, Energy Specialist. The AfDB Mali field
office provided support during the preparation of the Scaling Up Renewable Energy Program (SREP)
Investment Plan.
The CIF-AfDB team is grateful to the Government of Mali, national counterparts, and NGO and private
sector representatives who contributed to this brief. More specifically, we would like to acknowledge
the intensive work done by the SREP national commission in 2011/12 for the preparation of the SREP
Investment Plan from which this brief is extracted. Under the leadership of Sinalou Diawara, National
Energy Directorate (DNE), the commission was composed of: Cheick A. Sanogo (DNE); Birama
Diourte (DNE); Ismael O. Toure, Mali Agency for Domestic Energy and Rural Electrification (AMADER);
Alassane Agalassou (AMADER); Hamata Ag Hantafaye (ANADEB); Aminata Thera Fofana (ANADEB);
Sékou O. Traore, National Solar Energy and Renewable Energies Centre (CNESOLER); Alhousseini
I. Maiga (CNESOLER); Sékou Kone, Agency for Environment and Sustainable Development (AEDD);
Béchir Simpara, National Directorate for Pollution and Environmental Nuisances (DNACPN); and Tidiani
Coulibaly, National Directorate for Environment and Forests (DNEF).
We would also like to acknowledge the critical contribution provided by the World Bank (WB) Group
in preparing the SREP Investment Plan, especially Peggy Mischke, Renewable Energy Specialist
(WB); Fabrice Bertholet, Senior Energy Specialist (WB); Stephanie Nsom, Energy Specialist (WB);
Alain Ouedraogo, Senior Energy Specialist (WB); Paterne Koffi and Koffi Klousseh, Investment Officers
(International Finance Corporation).
Julian Blohmke, Renewable Energy Consultant with the AfDB, peer reviewed this country profile along
with the WB team mentioned above.
Amel Abed and Samar Yahyaoui provided administrative support to the team. Pénélope Pontet, Sala
Patterson and Tharouet Elamri provided support for editing, laying out and disseminating this country
profile.
We hope that the information provided in this document will contribute to mobilizing additional investors
and partners in financing low-carbon development in Mali.
10
Renewable Energy in Africa: MALI Country Profile
Executive Summary
Mali has been selected as one of the six countries to benefit from the Scaling-Up Renewable Energy
Program in Low Income Countries (SREP). The rationale behind this choice is, on the one hand, the
nature and scope of the climatic, environmental, demographic and energetic problems Mali faces, and,
on the other hand, the significant efforts government has already made to meet key energy challenges.
The SREP Expert Group’s report highlights in particular: (i) low rural access to electricity; (ii) a sound
institutional base for solar photovoltaic (PV) implementation; (iii) a positive track record in developments
to date; (iv) a potential for productive use of energy in agriculture and small commercial entities; and (v)
sustainable biomass and biodiesel programs in place.
A SREP Mali Investment Plan (IP) has been prepared under the leadership of the Government of Mali
(GoM), represented by the Ministry of Energy and different specialized national agencies. It is a countryled program, in line with key strategies of the national energy sector, as well as with the main principles
of the Growth and Poverty Reduction Strategy Paper and the National Climate Change Strategy. It
proposes a coherent, programmatic approach for transformational change and promotes both public
and private sector operations to remove barriers that might prevent scaled-up investments.
11
This renewable energy country profile is a knowledge product derived from the SREP IP, with the
objective of showcasing to a wider public the renewable energy status of the country, development
options, and opportunities and constraints.
Key constraints and challenges of the energy sector
At present, the energy sector in Mali is facing a number of challenges:
• The sector is characterized by a high dependence on oil. Importations are constantly increasing
due to the demands of a fast growing population and economic growth. This is exposing the
economy as a whole to the volatility of oil prices and puts the economy under foreign reserves
pressure. Local energy service providers in rural areas that operate isolated fossil-fuelled minigrids are particularly affected by rising and volatile fuel prices as well as by considerable fuel
transport costs inside Mali.
• About 78% of household energy needs are satisfied by biomass resources (wood and charcoal),
which cause health problems among rural populations from indoor air pollution. Biomass use
also aggravates environmental degradation such as deforestation and land degradation.
• Electrification rates are still very low, especially in rural areas (15% of rural towns and villages as
compared to 55% in urban centres). Most households in rural areas satisfy their energy needs
by using kerosene and batteries, which are expensive and unreliable. The power transmission
and distribution system is mainly managed by Energie du Mali SA (EDM), the national utility,
and local energy service providers operating in public-private partnerships (PPPs) with national
agencies in isolated rural areas. The projected expansion of the national electricity grid is unlikely
to connect a significant number of isolated low-income populations in the next decade, thus
creating a considerable market for isolated off-grid rural electrification schemes.
• The current regulatory framework does not adequately promote private investment in renewable
energy, though the local private sector has been increasingly involved in rural electrification since
2007.
• The impacts of climate variability are making the country’s electricity supply – which depends
on hydroelectric power for about 45% of its on-grid supply – increasingly vulnerable. Climate
change is expected to exacerbate this situation further and to impact biomass production as
well.
• The financial status of the electricity utility EDM SA is extremely weak. Government already
transferred large amounts of capital to the utility in 2013 and will have to continue to support it
for the coming years, despite planned annual rises in tariffs.
Inadequate access to affordable energy is also limiting social opportunities for the poor, women and
youth, in particular; gender disparities in accessing energy are blocking the social development of
communities, particularly in rural areas.
Renewable energy (RE) has great potential to address many of these sector challenges as well as to
contribute to socio-economic development and poverty reduction. Its development, however, remains
slow in spite of considerable solar, hydro and biomass potential throughout the country. Grid-connected
RE (excluding hydro generation) was negligible as of 2014 but it is expected to grow to around 4% by
2019/20.
In this context, the GoM has set objectives to achieve better electrification rates nationwide. It is
currently updating the energy policy, including a new target for rural electrification of 61% by 2033. The
12
Renewable Energy in Africa: MALI Country Profile
GoM also aims to increase the share of RE in the national electricity mix to 25% over the same period.
Nonetheless, there are a number of major constraints to overcome in order to achieve these goals.
• Institutional: Coordination among proliferating agencies concerned with RE development; weak
planning processes; incomplete framework for PPPs, in particular for utility scale independent
power producers (IPPs).
• Economic and financial: Weak domestic financial institutions; high up-front cost of RE
technology; inadequate financial incentives to attract the private sector; weak canalization of
finance from international sources for larger-scale RE development.
• Technical: Limited capacity of human resources in the sector; limited studies; impact
assessments on RE for electricity generation do not yet create adequate conditions for a robust,
standardized and programmatic approach.
• Social: Inadequate provision of information and awareness of consumers on RE opportunities
and challenges; poverty of Malian rural households impedes affordability, access and use of
modern RE without subsidy schemes.
Key achievements
Over the last fifteen years in Mali, a number of key achievements were made.
• Technological achievements. A number of technologies have been tested with successful
results (hydroelectric dams, solar photovoltaic pumping systems, public lighting, refrigeration,
telecommunication systems, water heaters, etc.). Additional promising technologies have been
identified and are ready to be developed (household biogas systems, industrial biogas systems,
biofuel production, etc.). Solar PV energy systems have been successfully introduced in the last
decade, either through solar home systems or mini grids.
• Policy achievements. The GoM’s vision and targets have been formulated in key policy papers,
namely: National Energy Policy (2006); National Strategy for the Development of Renewable
Energies (2006); National Strategy for the Development of Biofuels (2006); and the National
Energy Sector Policy Letter (2009-2012). Government is currently updating the policy papers.
New versions are expected by mid-2015.
• Institutional achievements. Mali has created and strengthened a number of institutions that
play key roles in the development of the RE sub-sector. The Prime Minister Cabinet is directly
involved through the supervision of the Commission for Electricity and Water Regulations and
a number of departments and agencies. The National Energy Directorate (DNE) formulates
national energy policies and ensures the coordination and technical supervision of regional
and sub-regional departments. Electricity services are essentially provided by EDM SA and by
local private energy companies supported by the Mali Agency for Domestic Energy and Rural
Electrification (AMADER) and the Rural Electrification Fund. Other important institutions in the
sector include the National Research Center for Solar and Renewable Energy (CNESOLER) and
the National Agency for the Development of Biofuels (ANADEB).
• Environmental and social achievements. Environmental and social impacts of energy projects
are measured following standard national review procedures by the Ministry of Environment.
Safeguard frameworks acceptable to multilateral development banks’ (MDB) requirements are in
place for rural energy projects. A National Climate Change Strategy was finalized in September
2011. The World Bank financed a gender assessment that identified considerable potential for
gender-specific activities in rural electrification that are inherently linked to productive energy uses
13
and those that strengthen PPPs between local energy service providers and national agencies.
Such activities will be further strengthened during IP implementation.
• Rural energy access expansion achievements. The GoM launched an ambitious rural
energy access program in the last decade to achieve the rural electrification goals set in the
National Energy Policy. In rural areas, private local energy companies and local initiatives with
support from AMADER (communities, women associations) are the drivers of Mali’s successful
rural energy access agenda. Mali’s rural energy access rate increased correspondingly from 1%
in 2000 to 15% in 2013. About 10% of rural energy services are provided using RE, including
mainly small-scale applications such as Solar Home Systems (SHS).
The further development of RE in Mali is promising and will support the country’s sustainable development
and poverty reduction efforts. It will also help reduce the country’s vulnerability to external price shocks
and fossil imports, and increase energy access. Despite the large potential, a series of technical and
non-technical barriers has limited the adoption of RE technologies. The GoM, with the support of its
development partners, and with the participation of the private sector, has established a series of
policies and projects whose implementation could open the market for RE providers, and help the
country satisfy its growing and unmet energy needs.
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Renewable Energy in Africa: MALI Country Profile
15
Key Energy Figures
Topic
Indicator
Unit
2000
2012
Source
Population
units/growth
10.26 mln/ 2.8%
14.85 mln/ 3.4%
WDI
Urban/Rural Population
Shares
%
72% rural
28% urban
64% rural
36% urban
WDI
GDP/per capita
USD- constant/
PPP1
380 (USD 2005)
835 (USD 2005 PPP)
476 (USD 2005)
1047 (USD 2005 PPP)
WDI
GDP growth
%
5.1% average per year
Poverty headcount
1.25USD
%
61.18%
50.43% (2010)
WDI/ National
Poverty Gap 1.25 USD
%
25.8%
16.4%
WDI
Electricity Access
(urban/rural)
%
1% rural
55% urban 15%
rural
(2010)
IP
Electricity Access
(national)
%
17%
27% (2010)
WB-GTF, IP
Electricity Consumption
per capita
kWh/p.c.
Electricity Demand and
growth
%
Installed Base
MW/GW
425 MW (only EDM)
EDM SA
Share of Hydro
%
44.4% (2014- only IC
system)
EDM SA
Share of Other RE
%
0.1% (2014-only IC
system)
EDM SA
Share of gas/coal/fuel
(as relevant)
%
Imports of fuels
(% of imports)
Socio-Economic
Access and
Consumption
Production
WDI or
calculated
External Financing
1
USD
FDI for the energy
sector from 2000
USD
EDM SA calculated
6.6% per year
(2008-2012)
(Interconnected System
Only)
IP
23.6%
Net Imports of electricity (% of
production)
Aid for the energy
sector from 2000
WDI
26.0% (2010)
WDI
IP, calculated
478.5 USD millions
(2011 prices)
OECD CRS
World Bank PPI
Purchasing Power Parity
16
Renewable Energy in Africa: MALI Country Profile
17
I.
18
Renewable Energy in Africa: MALI Country Profile
19
I. Country Context
Mali is a large country with diverse ecosystems and climatic zones, spanning from the
arid desert in the north, to the tropical areas of the south. In the future, temperatures are
projected to rise and rainfall to decrease, increasing climate vulnerability. The population
of Mali is 14.85 million but growing fast (3.4% year). Mali has experienced sustained
economic growth in the last decades, but in 2012 it was hit by security, institutional
and economic problems that have hindered the country’s development. The situation
almost normalized in 2013 and the country is projected to grow economically. Poverty
indicators improved in the last decade, although 44% of the population still lives below
the national poverty line.
Geography and climate
Mali is a landlocked country in the Sahelian belt of West Africa. It covers an area of 1,241,248 km2, of
which 51% is desert and 4% arable lands2.
The climate, highly variable, is characterized by a long dry season and a rainy season averaging one
month in the north and up to five months in the south. Rainfall ranging from 1,200 mm/year to 200
mm/year has resulted in the climatic stratification of the country into four ecological zones with a highly
diversified agricultural potential. Historical data indicate a rise in average temperature of about 0.7
degrees Celsius since 1960, and projections point to a continuation and acceleration of this rise as
well as a decrease in the overall amount of rain (with more frequent extreme events such as floods)3.
Mali is highly vulnerable to climate change, climate variability and desertification. These factors may
create risks for the RE sector, affecting biomass production and hydroelectric resources.
Institutional framework
Mali has been independent since 1960 and a multi-party democracy since 1991. From 1991 to 2012,
it was a stable country that experienced a democratic and peaceful transfer of power between parties.
At the beginning of 2012, Mali was hit by a multi-faceted crisis: a conflict in the north of the country that
threatened its territorial integrity; political and institutional instability in the south that resulted in the coup
of March 22; and severe food insecurity as a consequence of the previous year’s droughts.
Following these events, Government re-gained control of key areas in the north. A first peace deal was
signed in June 2013, although it lasted only few months. Troops from the European Union and the
African Union supported the Malian Government to stabilize the situation. After a short transition period,
democracy was restored and parliamentary and presidential elections were held in 2013 with success.
Mali is part of the Economic Community of West African States (ECOWAS) and the West African
Economic and Monetary Union (WAEMU) with whom it shares the same currency.
Socio economic demographic context
As of 2012, Mali had a population of 14.85 million people with an average annual growth rate of 3.4%4.
The majority of the population (about 64%) lives in rural areas, but the urban population grows steadily
at 5% per annum. Population growth is a major concern for the country’s future since it implies a strong
increase in basic needs, including energy5.
2
www.fao.org
3See: http://country-profiles.geog.ox.ac.uk/UNDP_reports/Mali/Mali.lowres.report.pdf
4
Data from the World Bank World Development Indicators, accessed in April 2014.
5
The rising demand for electricity might lead to increasing power outages in years to come if generation capacity is not enhanced.
20
Renewable Energy in Africa: MALI Country Profile
Mali’s economy is dominated by the primary sector, which accounts for 36.5% of GDP and employs
nearly 85% of the working population. The electricity and water sub-sector accounts for 1.91% of GDP6
Mali imports all the fossil fuel it needs, making it highly vulnerable to price volatility.
The mining sector also has a prominent role. Gold is Mali’s main export and the country is the third
largest gold exporter in Africa. There are seven active gold mines and 285 prospecting permits have
been issued. The mining sector is a major driving force in the growth of internal energy demand.
On average, between 2000 and 2012, Mali experienced strong economic growth, averaging 5% yearly
accompanied by a modest increase in GDP per capita (from 380 USD to 476 USD at constant 2005
prices, or from USD 835 to USD 1046 in Purchasing Power Parity terms). In 2011, economic growth
reduced to 2%; the following year it was -1.18%; and in 2013 and 2014, it started to be positive again
(around 5%). Poverty indicators improved and the headcount ratio at the national poverty line passed
from 56% to 44% between 2000 and 2010, while the respective poverty-gap measure passed from
25.8% to 16.4%7.
Despite economic growth, Mali remains a country with severe poverty and low human development
indicators. Most of the Millennium Development Goals are not expected to be achieved by 2015. Mali
has made a lot of progress in recent years but major inadequacies in access to basic services and
infrastructures have to be addressed. The current Growth and Poverty Reduction Strategy (CSCRP 20122017) considers energy a key area for economic development, gender equality and the environment.
It also envisages a series of policies and projects to support its development. The long-term vision for
the energy sector, mentioned in the CSCRP, is to make RE the main source of energy for the country.
The strategy consists of developing new RE, reducing the share of thermal generation and developing
energy access for all.
6
7
DNTCP/MF; trends of Mali’s major macroeconomic and financial indicators and the 2011/2012 outlook. November 2010.
World Bank, World Development Indicators, accessed April 2014.
21
II.
22
Renewable Energy in Africa: MALI Country Profile
23
II. Energy Sector Profile
The primary energy supply in Mali is biomass, supplying 78% of all energy consumed.
Electricity access rates are low but improving, at 55% in urban and 15% in rural areas.
Electricity demand is growing extremely fast (about 10% per year in recent years) driven
by domestic consumers and the industrial and mining sectors. The national grid has a
large but declining share of hydroelectricity, but both isolated centres and large captive
generators rely exclusively on fossil fuels to satisfy their energy needs. International
electricity trade will have a growing role in the next years. In rural areas, a decentralised
approach is being pursued, allowing private energy services companies to operate.
Gender issues and specific domestic energy policies are being addressed by the state
and by the rural and domestic energy agency (AMADER).
Energy sector description
The primary energy supply in Mali is largely based on biomass (78%). It is the main energy source
for the majority of the population, while fossil
fuels contribute to 21% of the energy supply
1%
and hydro contributes 1% (excluding electricity
11%
trade)8.
21%
88%
2000:
69.2 PJ
Biomass
2008:
133.3 PJ
Access to electricity in 2010 was about 55% in
urban areas and 15% in rural areas, where it was
almost inexistent a decade earlier. The latest data
for urban areas shows further improvement: in
2012 the access rate was 62%9.
1%
78%
Oil & oil products
Mali’s oil and gas subsector is characterized by
total dependence on petroleum imports, which
represented 26% of total imports in 2010. This is
exposing the economy as a whole to the volatility
of fossil fuel prices. It also puts the economy
under foreign reserves pressure, including the
development of the energy sector.
Hydro
Figure 1. Total Primary Energy Supply in 2000
and 2008 (Source: IRENA; 2012).
Current status of electricity sector
EDM SA is the utility that generates, transmits and distributes electricity in Mali. It has been owned
and managed by the state from its beginning in 1960, until 1994 when it delegated its management
to an external consortium. In 1997, the management contract was ended and the state committed
to privatization. In 2000, the utility was partially privatized to a consortium composed by Saur, a
Bouygues group subsidiary (47%), and Industrial Promotion Services, a subsidiary of the Aga Khan
Fund for Economic Development (13%). The hydroelectric plants were kept under state ownership. The
privatization lasted until 2005, when SAUR withdrew from the company selling its shares to the other
parties, and the state regained 66% control10 .
8
9
10
Source: IRENA, 2014. Mali Country Profile, data refer to 2008.
Source EDM-SA - http://www.edm-sa.com.ml/edmsa/chiffres.asp
Gualberti, G., Alves, L., Micangeli, A., & da Graça Carvalho, M. (2009). Electricity privatizations in Sahel: A U-turn? Energy Policy,
37(11), 4189–4207. doi:10.1016/j.enpol.2009.05.018
24
Renewable Energy in Africa: MALI Country Profile
The financial state of EDM SA at the end of 2013 was critical due to the high level of indebtedness with
banks and creditors, a deficit in installed capacity, a shift towards thermal generation and low tariffs
unable to recover costs. The GoM has planned to act both through budget compensation of more than
USD 126 million (in addition to an ECOWAS grant of USD 31 million) and by preparing a recovery plan
for the energy sector with contributions from the World Bank and IMF11. Although the sector is vertically
integrated, the unbundling of the sector has been discussed extensively. However, no decision had
been taken at the time of writing (mid-2014).
Electricity demand
Electricity sales from EDM SA increased consistently in recent years, surpassing 1,000 GWh in 2012
from 785 GWh in 2008 and averaging 6.6% growth per year. The number of clients also increased from
202,000 to 290,000 during the same period.
800
700
Actual
Demand
600
500
Satisfied
Demand
400
300
+200 MW
200
100
0
2008
2012
Hydro production
Demand
2016
2020
Thermal production
2024
Interconnections
Known and projected actual demand
Figure 2. Energy Demand & Production Projections (MW) – On grid
EDM SA (Source: API; 2011).
There is an unexpressed and
largely
unsatisfied
demand
for electricity in Mali, both for
domestic users and for large
industrial complexes, in particular
in the mining sector. In 2012,
the installed base reached 357
MW for the central grid (but peak
capacity is lower, 212 MW) and
68 MW for isolated centres12.
Industries and mines, on the
other hand, have an estimated
installed base of 200 MW to
satisfy their own demand. The
mining sector alone experienced
significant growth passing from
47 MW to 136 MW between
2008 and 2011, exclusively from
thermal power plants. The lack of
reliable, lower-cost grid electricity
is considered a barrier for further
development of the sector13.
In 2013, the capacity gap to meet demand was estimated at 111 MW, which represents 45% of needs.
In 2014, the estimated capacity gap was 32 MW, which represents 13.2% of needs.
Keeping up with the increase in demand presents a significant challenge for the sector. The GoM’s
ongoing energy access program involves expansion of both grid and off-grid renewable and nonrenewable energy sources to face growing national electricity demand. Going forward, increased
regional integration could help Mali meet its energy needs through electricity imports (Fig.2).
Electricity supply
The Malian electricity sector can be divided into four segments: the interconnected system, isolated
centres, captive generation by large consumers and the rural sector.
11
12
13
Respectively, CFCA 50 billion and CFCA 20 billion - Source: Task-Force - Rapport Provisoire - Perspectives énergetiques à court
terme du réseau interconnecté - Recommandations pour le redressement de la situation financière et opérationnelle du secteur de
l’électricité pour la période 2014-2020.
Source EDM-SA - http://www.edm-sa.com.ml/edmsa/chiffres.asp
Promotion de l’investissement privé au Mali. Opportunités pour les investisseurs dans la filière Energie. Mise à jour : Décembre
2011.
API-MALI
http://www.apimali.gov.ml/uploads/news/id112/Présentation_investisseurs_Energie%20_français.pdf
25
The interconnected system, owned and managed by EDM SA, is dominated by hydroelectricity, mainly
generated by the Manantali Dam (of which Mali owns 104 MW out of the total 200 MW) and Sélingué (46
MW). Hydroelectricity represented 60% of all electricity produced in 2012, while the rest was generated
by diesel or heavy fuel power stations. Notably, in recent years, the Manantali Dam encountered
production problems and other important hydro plants (Sélingué and Sotuba) are experiencing delays
in their 10-year maintenance schedules. Therefore, the share of hydroelectricity in the interconnected
system decreased to 44% in 2014 (Table 1).
In 2013, the generation profile of EDM was as follows: 21% of energy delivered was thermal, generated
by EDM; 26% was purchased thermal energy; 16% was hydroelectricity, generated by EDM; and, 37%
was purchased hydroelectricity.14 The share of thermal energy in the energy mix is expected to increase,
between 2014 and 2017, to reach 62% (Table 1).
Table 1. Mali Electricity Mix, interconnected system, including imports.
2012
2013
2014
2015
2016
2017
2018
2019
2020
Real
Real
Plan
Forecast
Forecast
Forecast
Forecast
Forecast
Forecast
39.9%
47.0%
55.7%
59.9%
60.6%
61.9%
50.7%
51.2%
55.2%
Hydro
60%
53.0%
44.2%
39.9%
36.3%
35.3%
46.9%
44.5%
40.9%
Solar
0%
0.0%
0.1%
0.2%
3.1%
2.8%
2.4%
4.3%
3.9%
GWH
1275
1402
1629
1789
1966
2197
2516
2741
2985
Thermal
Source: Mali - 2014 Provisional Electricity Recovery Plan
To keep up with demand, EDM invested in two medium-sized thermal generation projects (heavy fuel
oil plants) inaugurated in 2010 for a total of 90 MW. The Malian grid is already regionally interconnected
to Mauritania, Senegal and Cote d’Ivoire. Further reinforcement of the connection is planned to lower
the cost of power in the medium term and to allow Mali to purchase more power from its neighbours.
There are few experiences with RE on the EDM SA grid, namely hybrid power plants (diesel/photovoltaic
solar). The first was inaugurated in February 2011 (216 KWp) and two others in early 2014. Solar
production is expected to ramp up and account for around 4% of total energy generated by 2020.
The EDM SA also serves 22 isolated centres exclusively with diesel power plants, for a total of 68 MW
as of 2012 (Table 2).
Table 2. EDM SA Installed Base, 2008-2012.
EDM
Unit
2008
2009
2010
2011
2012
Interconnected Grid
MW
243.3
253.3
273.3
327.3
357.3
Isolated Centres
MW
49.7
57.2
60.1
67.4
67.9
Total
MW
293.0
310.5
333.4
394.7
425.2
Source: EDM-SA
Large consumers in the mining and industrial sector also exclusively use thermal generation to satisfy
their needs (200 MW). Rural electrification uses a mix of diesel and PV.
14
EDM - Plan de Redressement de la Situation Financiere et Operationelle du Secteur de l‘Electricité, March 2014.
26
Renewable Energy in Africa: MALI Country Profile
The volume of EDM SA’s fuel consumption tripled from 2005 to 201015. In 2010, the electricity sector of
Mali was around 50% dependant on fossil fuels16; this share is believed to have further increased since
then. If private captive generation is included, the Mali energy system has a clear prevalence of fossil fuel
generation. The economic growth experienced by the country in the first decade of the century required
a rapid increase of energy generation achieved through new thermal power plants17. With a view to
enhancing energy security, the GoM is keen to reduce fossil fuel imports and embark on a low carbon
emission development path for both grid and off-grid electrification schemes.
Electricity generation is vulnerable to climate variability since a significant portion of the on-grid supply
managed by EDM SA comes from hydro power plants. It is worth noting, however, that the water
system is made up of two large rivers, namely the Niger and Senegal, forming immense watersheds
(300,000 km2 for the Niger, and 155,000 km2 for the Senegal). The total flow potential of these two river
systems is estimated at 56,000,000,000 m3 per year, and the country’s estimated hydro potential is, as
of 2014, nearly 1 GW.
Electricity distribution
Energy access in Mali is low but growing. In 2010, the national rate was 27%18; in urban areas, it was
55%19, and in rural areas, it was only 15%20. The latter is low even compared to the African average rural
access rate of 22.7% but represents a strong increase from the 1% access rate of 2000. Mali has a very
low population density of 12 persons per km2, its villages are often widely dispersed and the main grid is
not yet expanding to all major cities. As a result, a parallel on-grid and off-grid energy access expansion
approach is preferred, allowing both local private energy service companies and the national utility to
sell electricity to customers in their respective concession areas.
In fact, EDM SA serves 22 isolated urban centres via independent grids using diesel generators, while
in rural areas, the Malian Rural and Domestic Energy Agency (AMADER) is pursuing a decentralised
approach by allowing generation by private local energy companies and local initiatives (communities,
women associations, NGOs).
When the World Bank-financed “Household Energy and Universal Access Project” (HEURA) closed,
it was estimated that 74,787 off-grid connections for households and public lighting had been made,
providing electricity access to more than 1,200,000 beneficiaries. In addition, 1,295 public and
community institutions and centres had also been provided with off-grid electricity access, including
218 schools and 168 health centres. Generation technologies introduced so far essentially include
diesel generators and associated transmission and distribution systems, but there are also many SHSs
and a few pilot hybrid solar/biofuel mini-grids. The total installed capacity of mini-grids is around 15 MW,
with less than 10% accounting for RE uses.
15
16
17
18
19
20
EDM - Plan de Redressement de la Situation Financiere et Operationelle du Secteur de l‘Electricité, March 2014.
API-MALI 2011, cit.
Recent thermal plants include, notably, the Kayes and Kita plants in 2002, CAT (2, 4, 6) in 2006, the Balingué Plant (Indian generators)
in 2007, and the BID and SOPAM plants in 2010. A portion of the thermal energy has also been imported from Nouakchott
(AGGREKO) since 2007..
Compared to 25.4% in 2008; this stagnation is accounted for by the high increase in the country’s population from 1998 to 2009.
Urban electricity access rate decreased significantly by 5 points as a result of urban expansion.
In rural areas, the access rate rose from 1% to 14.9% in 2010, indicating a special effort by the Ministry of Energy through AMADER.
27
Local energy service providers in rural areas that are operating isolated fossil fuel generators and minigrids are especially affected by rising and volatile fuel prices, considerable fuel transport costs inside Mali
and, in rural villages, environmental pollution (GHG emissions, noise pollution). Fuel charges currently
amount to up to 75-80% of operational expenditures for local energy service providers in rural areas.
Traditional/Domestic energy
Energy consumption is dominated by traditional biomass sources. Fuel wood – the most important
source of household energy21 - is derived from the country’s forests, whose capacity is estimated at
nearly 33 million hectares, with 520 million m3 of standing trees. The consumption of fuelwood and
charcoal increased steadily, reaching a yearly growth rate of 2.62% and 7% between 2000 and 2006,
respectively22. In a country vulnerable to climate change and where the degradation of land and natural
resources constitutes a major problem, fuelwood cannot provide an adequate response to growing
energy needs. Uncontrolled logging has resulted in the implementation of a Domestic Energy Framework
as well as the Forestry Code and Electrification Master Plan, a set of reforms aimed at preserving the
forest resource. AMADER has the mandate to handle domestic energy projects, in addition to rural
electrification.
The implementation of a fuelwood supply and control system has fostered the organization of the
commercial industry (logging, transportation, and distribution), further translating into the creation of the
Rural Wood Market system. To date, the long-term sustainability of these markets is still challenged by
the existence of parallel and uncontrolled markets. Pressure on the country’s forests and wood markets
will continue to be high if no alternative, sustainable and affordable energy sources are introduced. This
is particularly true for rural areas where energy sources are needed that are in synergy with potentials
for productive energy uses and employment creation.
Additionally, the World Bank has been assisting AMADER in mainstreaming gender issues into its projects
and creating a “gender energy action plan” that focuses on: 1) strengthening the gender desk within
AMADER; 2) mainstreaming gender into monitoring and evaluating AMADER projects; 3) communitylevel training; 4) identification of new technologies, best practices and sustainable focal points; 5)
solutions to the removal of barriers; 6) communication and information sharing; and 7) capacity building
and training of relevant organizations.
Other relevant projects on gender and domestic energy include the installation of Multifunctional
Platforms, with UNDP support, and more than 400,000 improved cookstoves, under the framework of
the World Bank Household Energy and Universal Access program.
SWOT box
Strengths
Weaknesses
Large hydro resources
Regional interconnections
Large investments planned
Small Power Producers for rural generation
Overall dependence on fossil fuels
Difficulty coping with electricity demand
Financial situation of EDM SA very critical
Rural access, domestic energies and gender issues
Opportunities
Threats
Sustained economic growth
Further regional integration
Climate change
Fossil fuels costs
21
22
According to the Population and Health Survey, 4th edition (2006) (ESDM IV), 5.3% of rural households (compared to 40% in urban
areas) use charcoal as fuel; 91.2% of rural dwellers and 55.1% of urban dwellers use firewood.
Seconde Communication Nationale du Mali sur les Changements Climatiques, Juin 2011.
28
Renewable Energy in Africa: MALI Country Profile
29
III.
30
Renewable Energy in Africa: MALI Country Profile
31
III. Renewable Energy Potential and Implementation
Mali has a large renewable energy potential, which is only partially harnessed. Solar
energy technology is particularly advantageous due to exceptional radiation levels,
especially in the north. Biomass is abundant in the southern regions and the GoM
plans to dramatically scale up biofuel production. Hydroelectricity is partially exploited,
especially by large dams, with new facilities being planned. However, the potential for
mini- or micro-hydro is also present. Wind power is at the very early stage and wind
mapping is being produced.
Renewable energy potential
Mali has a high and largely unexploited potential for RE sources and vast unexpressed and unsatisfied
energy needs from a widely dispersed population. Biomass is the primary energy source used in Mali,
although the modalities in which it is collected and used are often informal and traditional. Hydro is the
only large-scale RE deployed; solar technology is very promising but still has low uptake.
Solar
Mali is in one of the regions in the world with higher solar potential. Average solar radiation in the country
is well distributed over
the national territory with
1
Latitude -12 -11 -10 -9
0
3
-6
2
-7
-4
4
-5
-2
-3
-1
-8
an estimated 5-7 kWh/
24
6,53 6,18 6,37 6,62
m2/day23 and a daily
sun lighting duration
23
6,35 6,51 6,62 6,72 6,97
of 7-10 hours. The
22
6,56 6,51 6,42 6,39 6,51 6,93 6,97
country’s solar radiation
21
6,73 6,44 6,37 6,42 6,73 6,85 6,85 6,86 6,90
is stronger in the desert
areas of the north (Fig.
20
6,74 6,76 6,76 6,74 6,79 6,78 6,66 6,54 7,03 6,97
3).
Solar technology is
particularly
suited
for granting energy
access to remote and
isolated
populations.
Despite the potential,
the
penetration
of
solar technology is
still low and almost all
installed capacity is
from independent solar
installations. No data
is available on solar
thermal deployments.
23
19
6,68 6,64 6,67 6,72 6,74 6,56 6,66 6,82 6,87 6,77 6,94
18
6,52 6,52 6,55 6,63 6,65 6,60 6,53 6,82 6,06 6,70 6,77
17
6,37 6,38 6,42 6,48 6,49 6,77 5,92 6,11 6,35 6,43 6,59
16
6,05 5,99 6,39 6,51 6,52 6,52 5,79 5,72 5,77 5,84 6,20
15
5,15 5,67 5,71 5,76 5,86 5,86 5,99 6,04 6,05 6,07 6,21 6,21 6,17 6,14 6,31 5,95
14
5,41 5,31 5,31 5,42 5,53 5,58 5,69 5,64 5,71 5,78 5,85 5,84
13
5,04 5,01 5,01 5,07 5,19 5,35 5,38 5,38 5,40 5,43
12
4,79 4,67 4,72 4,73 4,86 4,95 5,05 5,05 5,07 5,41
11
4,62
10
4,67 4,75 4,77 4,74
4,57 4,61 4,64 6,56
Figure 3. Solar Radiation in Mali.
February 2011, SREP Mali, Stocktaking Report.
32
Zone 3
Zone 2
Zone 1
Renewable Energy in Africa: MALI Country Profile
Solar power grid generation was negligible in 2014 but plans are to expand it in the following years.
Large solar PV IPP projects were being negotiated as of mid-2014 and are expected to generate a
substantial amount of power starting in 2015/16. As for EDM isolated centres, three new hybrid plants
(biodiesel/PV) were put in operation between 2010 and 2014; with the assistance of SREP, new hybrid
plants should be developed to reach 4.5 MW under the supervision of AMADER.
Hydro
Large scale hydroelectricity potential in Mali is mainly situated on the Niger and Senegal rivers, where
10 identified sites could provide 1 GW of installed base and an annual average energy generation of
about 5,000 GWh. Of this potential, about 250 MW have been developed so far: Selingué and Sotuba
Hydro Power Plants on the Niger River; and Manantali Hydro Power Plant on the Senegal River (whose
output is shared with Senegal and Mauritania). In addition, the Felou Hydro Power Plant on the Senegal
River has been upgraded from 0.6 MW to 60 MW with joint support from the World Bank and European
Investment Bank. Further large-scale hydro power plants are under evaluation by IFC, including Kenie
(42 MW). Potential exists also for mini and micro-hydro, and several sites have been identified. With
the support of the SREP program, four micro- and two mini-hydro power plants are being developed
together with the supporting distribution infrastructure, for an additional capacity of 14.6 MW.
Biomass/Biofuels
Biomass is the most widely used form of energy in Mali. Despite the relatively fragile ecosystem, the
resource is abundant and includes: (i) in terms of fuel wood, about 33 million hectares with a standing
volume of 520 million cubic metres and a weighted productivity in the entire country of about 0.86 cubic
metres/ha/year; (ii) several million tonnes of agricultural residue and plant waste; (iii) an overall annual
production capacity of 2,400,000 litres of alcohol since 1997; and (iv) about 2,000 hectares of Jatropha
plantations for sustainable bio-fuel production24.
Opportunities exist to develop the capacity of sustainable biomass and biofuel uses given the strong
agricultural base of the economy. In particular, opportunities to scale up biofuel projects for household
electrification, to blend fossil fuels and to power productive uses for agricultural businesses in rural
areas (such as grinders and de-huskers) could be explored further. The 2008 National Strategy for
the Development of Biofuels identifies two biofuels with great potential: ethanol, for which commercial
expansion is already ongoing; and Jatropha oil – derived from a widespread local plant — whose
seeds can be pressed and produce quality oil that is easily compatible with diesel engines. Jatropha
is a robust plant that can grow in semi-arid climates with little or no maintenance. Its potential in Mali
is considerable and, besides its uses in rural areas, there are ambitious plans for its development and
blending with fossil fuels for transport. A research paper from the World Bank finds that the development
of Jathropha biofuels would be beneficial for both macroeconomic and distributional aims if the plants
were to be developed on idle lands, i.e. not displacing other crops or forests25. The UNEP Risoe Center
conducted a study to estimate the potential of other agricultural residues (rice straw, residues from
sugar production and cotton stalks), finding, in some cases, substantive amounts of raw material that
can be used to feed biomass power plants instead of being burned26.
24
25
26
A locally adopted, non-food crop, relatively resistant to droughts.
Boccanfuso, D et. al (2013) Macroeconomic and Distributional Impacts of Jatropha-based Biodiesel in Mali. World Bank Policy
Research Paper n. 6500.
Nygaard, Ivan et. al. (2012). Agricultural residues for energy production in Mali, DANIDA contract 1711, Feasibility of renewable
energy resources in Mali. UNEP Risoe Center - http://www.frsemali.org/Biomass_resources.htm
33
Wind
Wind energy potential is present in some regions of Mali. In the Sahelian and Saharan zones, the annual
average wind speed is estimated at 3 m/s to 7 m/s. The UNEP Risoe Center developed a numerical wind
mapping exercise. It concluded that wind resources are relatively low but that under certain conditions
they may be economically feasible, i.e. at favourably exposed sites, given enhanced winds and where
practical utilization is possible (given grid connection or replacement or augmentation of diesel-based
electricity systems)27. For the moment, there is no penetration of wind technology beside pilot projects
and small water pumping.
Climate change risks and opportunities for RE
Mali is one of the countries with the lowest emissions in the world, reaching 0.04 metric tons of CO2 per
capita28 in 2010. The second National Communication to the United Nations Framework Convention
on Climate Change (UNFCC) estimates that the emission of all GHGs reached 3,159 tCO2 eq. in 2006,
from 2,390 tCO2 eq. in 200029. The main source of emissions is traditional biomass, which accounts
for 81% of all GHG emissions.
Vulnerability to climate change is severe. The most likely scenarios foresee a rise in temperatures and a
diminution in rainfall for all localities in Mali with potentially severe effects on agriculture, forestry, health,
energy and water, among others. According to Mali’s National Adaptation Programme of Action (NAPA),
the energy sector is identified as one of the priority sectors for taking on climate change adaptation
measures. In terms of vulnerability, the hydroelectricity subsector is highly subject to climate variations.
In accordance with the climate scenario formulated under the NAPA, a 1% decrease in water flow will
result in a 1.3 million KWh decrease in electricity generation. In particular, mitigating the impacts of
climate change on hydroelectric power generation and biomass production will be key for any energy
development and poverty reduction strategy.
SWOT box
Strengths
Weaknesses
Hydro, solar and biomass have a great potential
Experience in hydro, biomass and some solar PV
RE available for rural access in remote areas
Hydro maintenance needed
Unsustainable collection and use of biomass not fully
addressed
Little experience in wind power
Opportunities
Threats
Growth opportunities for all technologies
Great interest from private sector in solar PV IPPs
Biofuels with widespread local plants promising
Climate change and extreme weather events could
undermine RE potential, especially hydro and biomass
27
28
29
Jake Badger et. al (2012). Estimation of Wind and Solar Resources of Mali. Unep - Risoe Center - ISBN 978-87-92706-55-3 http://
goo.gl/xeCcpW
World Bank WDI.
Seconde Communication Nationale du Mali sur les Changements Climatiques, Juin 2011.
34
Renewable Energy in Africa: MALI Country Profile
35
IV.
36
Renewable Energy in Africa: MALI Country Profile
37
IV. Policy, strategy and regulatory framework
Energy is mainstreamed into national development policies and is one of the top priorities
of Government. Many policies have been formulated to reform the sector with the
objective of increasing its competitiveness, promoting private sector participation and
facilitating both access to energy and the contribution of renewable energy sources to
the energy mix. However, many challenges remain. Tariffs are still insufficient to recover
costs for power producers. In rural areas, power generation is extremely expensive,
while the involvement of foreign actors and external capital in the energy sector is still
at an early stage.
Mainstreaming of energy & RE into national development policies
Energy is both an opportunity and a constraint for the economic and social development of Mali. The
country’s Plan for Sustainable Recovery (PSR) for 2013 and 2014 indicates a way to exit the crisis and
places a strong emphasis on the necessity of adequate infrastructures – above all energy infrastructures
– to relieve the bottlenecks that are hindering economic development30. Various dimensions of the
energy challenge are incorporated into the national development policy, like gender, the necessity to
increase the use of RE sources, opportunities for the private sector and the challenge of universal energy
access. Both the PSR and the Growth and Poverty Reduction Strategy Paper (GPRSP - 2012-2017)
indicate the necessity to intervene in financial, technical and institutional aspects with the objective of
making sustainable renewable energies the country’s principal energy source and increasing access to
modern energy services. To achieve these objectives, Mali has developed a series of energy policies
and related institutions that are briefly presented below.
Energy policies
National energy policy
The main policy regulating the sector is the National Energy Policy (PEN), adopted in 2006, whose
overall objective is to contribute to the country’s sustainable development through the provision of
affordable energy services to increase access to electricity and promote socio-economic activities.
The specific objectives of the PEN are: (i) meeting energy needs in terms of quality, quantity and cost; (ii)
ensuring the protection of persons, property and environment against the risks of inappropriate energy
services; (iii) strengthening the capacities of policy, management, monitoring and control of the energy
sector; and (iv) strengthening the benefits of international cooperation in the field of energy.
The policy’s guiding principles are based on decentralization, liberalization, a programmatic and
participatory approach, competitiveness and the implementation of PPPs. The PEN constitutes a tool
for: (i) establishing a better match between energy availability and national socio-economic development;
(ii) fostering synergies between the activities of major stakeholders in the energy sector; (iii) effectively
directing the interventions of public, para-public and private actors of the energy sector for the rapid,
balanced and sustainable development of the country; and (iv) ensuring a better balance between
energy supply and demand with a view to improving access to electrification and reducing geographic
imbalances between the grid and off-grid areas covered.
30
Mali, Poverty Reduction Strategy Paper - Plan for the Sustainable Recovery of Mali 2013-2014, April 2013, http://www.imf.org/
external/pubs/cat/longres.aspx?sk=40508.0
38
Renewable Energy in Africa: MALI Country Profile
The PEN established a series of ambitious quantitative goals on rural electrification, community land
management for the wood fuel sector, biomass use, biofuels and RE to be achieved by 2015. Progress
has been made in many of these areas, although many targets will likely be unmet. The revision of the
PEN has started and an updated policy document is expected by mid-2015.
In 2009, Government issued the National Energy Sector Policy Letter, further specifying energy policy
objectives and targets. The letter lists the projects to be achieved between 2009 and 2020, including 133
MW of new hydro capacity and 100 MW of thermal capacity, the strengthening of the interconnections
with Ivory Coast and Ghana and other investments in the internal transmission and distribution network.
The letter further specifies the following main policy objectives:
• separation of the water entity within EDM SA to keep only the energy sector;
• tariff revisions to assure that prices reflect real costs in order to achieve economic sustainability
in the electricity sector;
• reinforcement of production, transmission and distribution infrastructures;
• increase private sector participation in the energy sector through either PPPs or entirely private
investments.
The letter also envisages the progressive retirement of the GoM from the capital of EDM SA and the
institutional reform of the company. The letter will also be revised in 2015 as part of the revision of the
energy sector policy and strategic framework.
Renewable energy policy
Renewable energies are addressed in several pieces of legislation, including the PEN (2006) and the
aforementioned letter (2009). The most important policy document in this area is the National Strategy
for the Development of Renewable Energy, which was adopted in 2006. It is aimed at: (i) promoting the
widespread use of RE technologies and equipment to increase the share of REs in national electricity
generation (up to 10% by 2015); (ii) developing the biofuel sub-sector for various uses (electricity
generation, transportation, agricultural motorization, etc.); (iii) creating better conditions to sustain RE
services; and (iv) searching for sustainable and suitable financing mechanisms for RE.
So far, the implementation of this national strategy has not been very successful. The strategy is
expected to be revised in line with the next revision of the PEN. To accelerate the implementation of the
national strategy, actions may be grouped into four main components: (i) comprehensive inventory of
the RE potential; (ii) development of RE and promotion of their technologies; (iii) capacity building and
development of cooperative actions; and (iv) impact assessment.
The National Strategy for the Development of Bio-Fuel was adopted in June 2008. It aims, firstly, at
enhancing affordable local energy production through the development of biofuels to meet the country’s
socio-economic needs. Secondly, it aims to reduce the country’s dependency on oil imports.
In addition to the RE strategies mentioned above, the National Adaptation Programme of Action
(NAPA), submitted and disseminated in 2007, includes RE projects, some of which have been partially
implemented. Furthermore, in 2011, the GoM elaborated a National Climate Change Policy and a
National Climate Change Strategy (both integrate RE into their action axes).
39
Electricity prices and tariffs
Electricity pricing and tariffs (on-grid). Based on 2012 figures, the average electricity tariff was at
FCFA 91.5/kWh (USD 0.19/
kWh), insufficient to cover
generation costs of FCFA
TARIFF (USD/kh)
NET PROFIT (USD Million)
122.1/kWh (USD 0.25/kWh).
50
0.50
Between 2008 and 2012,
40
0.40
the utility incurred high losses
30
0.30
(Fig. 4)31. Average generation
20
0.20
cost in isolated centres is even
10
0.10
higher, at about USD 0.35/
0
0.00
kWh32. To recover from this
-10
-0.10
situation, a Provisional Electricity
Recovery Plan was prepared in
-20
-0.20
early 2014, presenting various
-30
-0.30
options for tariff increases and
-40
-0.40
state subsidies to achieve
-50
-0.50
financial equilibrium by 2018.
2008 2012 2016 2020 2024
The plan suggests, as the more
viable option, a tariff increase of
Tariff (Average)
Net Profit
Generation cost (Average)
3% per year plus a transfer of
approximately USD 40 million
Figure 4. EDM-SA Tariffs, Generation Costs and Net Profits, 2008per year until 2017/18 when
2012 (Source: Elaboration of EDM SA data).
planned
investments
will
become operative33.
Electricity pricing and tariffs (off-grid). Private energy service companies are establishing schemes
and tariffs on the basis of the procedures and framework of the Rural Electrification Fund (REF), including
business plans and surveys of their customer’s willingness to pay for electricity. Experience shows that
schemes often follow similar structures. As such, different service categories are set up according to
rural customers’ electricity needs. To allow poor customers to access energy services, monthly lump
sum payments for basic services (which are usually around USD 5) and a monthly contribution to
street lighting were created. Rural energy subscribers with higher power demands are billed according
to their metered consumption at a tariff of about USD 0.50/kWh34. Once the connection is made, no
operating subsidies for the mini-grid operator or consumption subsidies for the operator’s customers
are provided.
To maintain their commercial viability in the absence of additional subsidies, local private operators
of these isolated mini-grids currently charge their customers prices that are up to two times higher
than the prices charged to social tariff customers by the national utility. Over the last years, AMADER
recognized a growing demand from local energy service companies to switch to renewable energies
as a means of reducing the cost of electricity provided and expand affordable and renewable electricity
access in all regions of Mali.
31
32
33
34
EDM-SA: http://www.edm-sa.com.ml/edmsa/chiffres.asp
EDM SA 2008 figure.
Source: Task-Force - Rapport Provisoire - Perspectives energétiques à court terme du réseau interconnecté - Recommandations
pour le redressement de la situation financière et opérationnelle du secteur de l’électricité pour la période 2014-2020..
AMADER billing, Decision 08 on approval of Decentralized Service Company operators’ electricity tariffs (Source: AMADER). Based
on the rural electrification master plan, capital investment cost subsidies of at least 70% have been deemed necessary in Mali
to arrive at average end user tariffs of about USD 0.50/kWH (PRODER, 2003). Without capital cost investment subsidies, rural
electrification schemes are expected to be 4-5 times above average utility tariffs..
40
Renewable Energy in Africa: MALI Country Profile
Rural electrification
In 2003 Mali developed and adopted a reference framework for rural electrification, leading to the creation
of AMADER, with a mandate to promote rural energy services and household energy. The REF to promote
rural energy access was set up in 2000 and has been managed by AMADER since 2005. The GoM’s
rural energy access agenda aims to create an enabling environment to attract private energy service
companies to rural energy service delivery schemes, by facilitating access to the REF. The REF aims
to (i) make rural electrification projects commercially viable; (ii) allow cost reflective and affordable tariffs
for the country’s rural population;
(iii) utilize subsidies to buy down
capital investment costs; and
(iv) promote PPPs. AMADER
Ministry of
Energy and
Financing:
thereby plays a central role as the
Water
Govt. + Public
agency in charge of (i) promoting
Authorization,
Org. + Donors +
Contracts, Tech.
Banks + Others
electrification
in
rural
and
(e.g. Carbon
Specifications
Credits)
suburban areas; (ii) working with
Authorization,
Licensing
all types of operators, national and
international private operators,
Private
REF managed
operators
NGOs, decentralized groups,
by AMADER
Local govts.
Funding
cooperatives, etc.; (iii) providing
NGOs, Assocs
contracts, TA
technical assistance and financial
Regulatory
support (investment subsidies);
Rural Energy
policy,
Services
Supervision
and (iv) acting as a de facto
CommercialBank
Productive
regulator in rural and suburban
Disbursement
activities,
areas (Fig. 5).
residential
customers,
social services
Minimum technical specifications
and mandatory quality of service
Figure 5. Mali’s Rural Electrification Fund (REF) (Source: SREP
standards are indicated in the
Investment Plan).
contract documents of operators
and translated into business plans
for rural electrification projects. The REF is based on a technology-neutral approach, looking for feasible
and cost-effective solutions for both provider and customer needs. The REF succeeded in attracting
more than 60 energy service companies to the rural energy service delivery business in Mali; they are
active on about 190 mini-grids. Initial investment subsidies from the REF are designed to make tariffs
acceptable for rural customers as well as to generate a financial rate of return for private operators.
Investment subsidies are limited to 70-80% of capital investment costs and rely on results-based
approaches (established based on the number of customers to be connected during the first two years,
the average tariff and the cost of investment for connected off-grid customers). No subsidies for energy
consumption are provided.
Private operators obtain off-grid concession for a 15-year period and have tested, through their
pilot projects, both market appetite and different technical and institutional arrangements for rural
electrification schemes. A generation capacity of about 15 MW (mainly diesel-run mini-grids) has been
installed through this PPP approach. Recent initial calculations in the context of Pre-PIN preparations
indicate that the installed capacity of hybrid mini-grids could be scaled up to about 53 MWp within
15 years. Currently, six additional MW are either under preparation or installation. These rural energy
projects have demonstrated the interest of rural populations and private operators in energy service
delivery. The most recent rural electrification objective is to reach 61% by 2033.
41
Policies promoting private investments for the energy sector
The regulatory environment is relatively favourable for energy investments in general. It is governed
by: (i) the REF described above; (ii) Mali’s Industrial Development Policy (aimed at an orderly, rapid,
sustainable, balanced and employment-generating industrial development); (iii) the PPPs Framework35;
(iv) the Investment Code (establishing a preferential customs and tax regime for the promotion of
investments); (v) the Investment Promotion Agency (API), providing a one-stop shop for all business startup procedures, assistance to investors and issuance of certification in accordance with the Investment
Code; and (vi) guidelines for an application decree36, guaranteeing open competition and organization
of the Public Electricity Service (including the role and skills of various sector actors, conditions of public
electricity service management, conditions for delegating and operating a public electricity service, and
tariff and accounting principles in the sector)37.
The GoM recognizes the value added of PPP for the development and scaling up of RE, based on the
principles of competition and performance based targets. The GoM equally recognizes the need for
continuing reforms to promote RE and strengthen the overall investment climate. A set of regulatory
measures were introduced to foster RE development. PPPs take the form of operating arrangements
based on authorization and concessions. Furthermore, a framework for PPP exists in the form of Build
Own Operate and Transfer concession contracts.
Although efforts have been made in recent years to improve the energy sector investment climate,
some barriers like the weakness of the investment code, the limited financial capacity of local actors
and the need for capacity building remain. To overcome these difficulties, a process of improving the
enabling environment for RE implementation is ongoing, supported by a SREP-related project. It is
foreseen that this will lead to (i) a revision and update of the energy policy and strategic framework
in a way that makes it more coherent and conducive to RE investment; (ii) a new power master plan
for long-term investment planning including RE, and a consolidation of the energy planning process;
(iii) new standard Power Purchase Agreements (PPAs) documents for RE; (iv) availability of standard
bidding documents and other contractual documents for RE; (v) guidelines for investors in RE; and (vi)
developing a capacity building and skills enhancement program for key technical, economic, financial
and legal aspects of RE technologies.
Trade barriers and trade policies (tariff and non-tariff barriers in RE
technologies)
There exists a decree on “suspension of the value added tax and duties on imported renewable energy
equipment”. It abolishes these taxes for five years starting from September 2009, thereby promoting
the importation of solar panels, solar lamps and other RE equipment38. The decree is being renewed –
and improved – in early 2014, for the next five years to come.
35
36
37
38
Under the Build Own Operate and Transfer contract, a company or a consortium of companies, finances, builds, operates,and
acquires a new project or system, which is then transferred to the authorities after a predetermined period.
Order no. 00-019-P-RM of 15 March 2000.
In this regard, several forms of partnership aim at supporting private investment-friendly environments (in the form of various
contractual methods including concession, lease and management).
Decree No. 09-503/P-RM of 23 September 2009: The customs rebate resulted in an overall decrease in the prices of renewable
energy equipment to various levels: 9.23% to 53.1% for modules, 16.7% to 21.5% for batteries, 23.7% for regulators, 18.4% for
inverters, and 23.4% to 43.68% for lamps. (These figures represent, in other words, the proportions of decrease in relation to the
initial cost of the equipment.)
42
Renewable Energy in Africa: MALI Country Profile
International agreements on energy
Mali is part of the West African Power Pool (WAPP), a specialised institution of ECOWAS with a mandate
of realising regional power system integration. It is also member of the Senegal River Basin Authority
and the Niger River Basin Authority. In this context, Mali hosts the Manantali Dam, developed as an
international project with Senegal and Mauritania, with whom the electricity generated is shared. Mali
also imports electricity from Côte d’Ivoire (equivalent to a 50 MW peak) and is likely to import more from
Senegal and Mauritania in the coming years39.
SWOT box
Strengths
Weaknesses
Many energy reforms implemented
Active rural electrification policies
Regulatory framework rather favourable to private
investments
Tariffs raised but not yet sufficient for cost-recovery
Private participation still limited
Opportunities
Threats
Regional integration in the WAPP
Revision of the whole policy and strategic framework in
2014/15
Planned improvement of regulatory environment for more
private sector participation in RE investment
Financial situation of EDM SA is extremely fragile
39
Source: Task-Force - Rapport Provisoire - Perspectives énergétiques à court terme du réseau interconnecté - Recommandations
pour le redressement de la situation financière et opérationnelle du secteur de l’électricité pour la période 2014-2020..
43
V.
44
Renewable Energy in Africa: MALI Country Profile
45
V. Energy Stakeholders and institutional framework
Many institutions participate in the energy sector of Mali, including the Prime Minister›s
Office, a few ministries and their technical services, and some autonomous agencies.
A regulatory commission is in charge of licenses and tariff fixing for the grid-connected
system managed by EDM SA. The latter is a vertically integrated utility in its concession
zones, but IPPs are foreseen. In rural areas, a specific agency for domestic and rural energy
regulates the sector in a simplified manner.
Structure of the energy sector
The energy sector of Mali is divided into three areas: the concession zones operated by the national
utility EDM SA either reached by the national grid or in isolated centres; small producers in rural areas;
and self-producers. The national grid and the isolated centres are owned and operated by EDM SA,
while small and large self-producers manage their own infrastructures. IPPs using RE technologies to
feed the national grid are foreseen but not yet operative.
Ministries with energy competences
The energy sector in Mali is characterized by a multitude of actors. The Prime Minister’s Office coordinates
the sector with responsibility for the regulatory organ, namely the Electricity and Water Regulatory
Commission (CREE). Five ministries have mandates related to the energy sector and its subsectors,
each overseeing specific directorates:
• The Ministry of Energy (ME) has a critical function, setting the role for the sector. ME oversees
the DNE, which formulates the National Energy Policy and caters for the coordination and
technical control of regional and sub-regional services as well as relevant services that contribute
to implementation of the policy. ME also directs several technical agencies (see par. 5.3);
• The Ministry of Environment, Sanitation and Water (MAEE) is responsible for the National
Directorate of Water and Forestry (DNEF);
• Ministry of Economy and Finances (MEF) supervises the National Office for Petroleum
Products (ONAP);
• Ministry of Rural Development (MDR) is responsible for the National Directorate for Agriculture
(DNA);
• Ministry of Women, Children, and Families (MFEF) manages the Multi-Functional Platform
Program.
Other governmental bodies with energy competences
Various governmental bodies are acting in the energy sector, reporting to the relevant ministers and to
the Prime Minister’s Office.
46
Renewable Energy in Africa: MALI Country Profile
CNESOLER is the National Centre for Solar and Renewable Energies, which, since the 1980s, has
curated the development of small-scale RE technologies and appliances, under the responsibility of
the DNE. The main mission of the CNESOLER is to collect basic data and undertake research, update/
review, produce and market appropriate technologies and equipment, train and supervise groups of
artisans, and protect small- and medium-sized enterprises.
ANADEB is the National Agency for the Development of Biofuels created in 2006. ANADEB is in charge
of ensuring the constant availability of bio-fuels on the market, facilitating consultation between national
and international partners in respect of bio-fuel standards, and monitoring their implementation.
AMADER/REF. The GoM established a REF in 2000, and AMADER, the specialized rural and domestic
energy services agency, in 2003. AMADER manages REF and implements policies in domestic and
rural energy. In particular, for rural electrification, AMADER acts as a regulatory authority for installations
below 250 kWh across the country, and above this limit in its concession zones. As part of its mission
to promote household energy and develop access to electricity in rural and peri-urban areas under a
technology-neutral approach, since 2003 AMADER has supported the development of RE in all regions
of Mali on a project-by-project basis in partnership with CNESOLER and ANADEB.
There are ongoing consultations for the restructuring of the energy sector that could result in a redefinition/
clarification of the missions of various governmental entities. In this context, the transformation of
CNESOLER into a National Renewable Energies Agency (ANAER) has been endorsed in early 2015 by
Government.
Energy regulator
The Electricity and Water Regulator Commission (CREE) was created in 200040. The commission is
composed of experts nominated by Government with the objectives of ensuring the quality of the public
services, protecting consumer interests, promoting competition between private actors and setting the
tariff scheme. CREE regulates the activities of energy concessionaries and self-producers, as well as
public water operators in urban areas.
Energy utility
EDM SA operates as a vertically integrated utility in its concession zones. After privatization failed (see
par. 2.2), it went back to majority ownership and management by the state, although a retirement
of the state from its ownership is still foreseen. Its financial situation is very fragile, due to the rising
costs of generation, low tariffs, technical and non-technical losses and the necessity of making large
investments to upgrade and expand its installed base. EDM accumulated vast debts and is only able to
operate because of large fund transfers from Government.
Other private companies
As of mid-2014, there were no grid-connected IPPs in Mali for RE technologies (hydro< 10 MW),
although the establishment of the first IPP with solar technology is foreseen with support from the SREP
Investment Plan.
NGOs active in the area of energy
There are several non-governmental and professional organizations that have an interest in various
aspects of the energy sector.
40
Ordonnance n° 00-021/P-RM of 15 March 2000.
47
Private sector and professional organizations
• Solar Professionals Association - Association des Professionnels du Solaire (APS)
• Female Engineers of Mali - Association des Femmes Ingénieurs du Mali (AFIMA)
• Mining and Solar Development Association - Association de Développement des Mines et du
Solaire (ADMIS)
• Chamber of Commerce and Industry - Chambre de Commerce et d’industrie du Mali
Civil society organizations
• Malian Association for the Environment Protection - Association Malienne pour la Protection de
l’Environnement (AMPERE)
• Helvetas Swiss Cooperation - Mali
• Inter coopération
• Malian Association of Awakening on Sustainable Development - AMEDD
• Group for Renewable Energies, Environment and Solidarity - GERES Mali
• International Network on Energy and Sustainable Development - Energia Mali
• Group of Research and Technical Application - GRAT
• Jatropha Mali Initiative
• Council of Concertation and Support for ONG - CCA/ONG
• Malian ONG Concertation Secretariat - SECO/ONG
• Mali FolkCenter
Malian private sector
• SSD
• Diawara Solar
• ZED. SA
• Mali Biocarburant
Donors/Financing institutions
Mali’s development partners play a major role in promoting and disseminating RE technologies. They
are divided into three groups:
• The first group concerns multilateral cooperation institutions that participate in financing projects
and programs through public and private institutions: World Bank Group, African Development
Bank, United Nations Development Program and the European Union Delegation.
48
Renewable Energy in Africa: MALI Country Profile
• The second group is made up of development partners under bilateral cooperation arrangements,
for financing projects and programs through public or private institutions: GIZ and KFW (Germany),
United States Agency for International Development, Danish Cooperation, French Development
Agency (AFD), Belgian Cooperation, the Netherlands and India.
• The third group concerns organizations that search for financing among development partners
for RE projects and programs. These organizations work directly with beneficiary communities.
These are Mali Folkcenter, SNV (Netherlands) and the Technical Research and Applications
Group.
SWOT box
Strengths
Weaknesses
Long-term existence of dedicated institutions for RE
(CNESOLER, ANADEB, etc.)
Independent energy regulator
Rural energy agency
EDM financial situation
Not yet PPP
Many energy-related institutions that do not always
coordinate
Opportunities
Threats
Interest from donors to support the sector
Creation of an agency dedicated to RE
49
VI.
50
Renewable Energy in Africa: MALI Country Profile
51
VI. Energy Investments and Competitiveness in the
Electricity Sector
RE investments in Mali are focused on hydro grid-connected facilities, taking advantage
of the large flows of the rivers Senegal and Niger. They are also very competitive costwise. On a smaller scale, in areas not connected with the main grid, a decentralised
approach is being attempted, in particular with solar systems, small-hydro and biomass/
biofuels. Despite their higher investment costs, off-grid RE is competitive compared to the
difficulty of managing diesel fuel generation in remote areas. Private investments in the
energy sector are encouraged, but, so far, limited to small rural applications. That said, the
interest of private sponsors is significant and some big IPPs are being prepared, mostly
with solar PV technology. Most of these investments should be connected to the grid.
There is some experience with CDM in the country, along with consistent support from the
donor community to scale-up RE deployment.
Diverse government institutions and development partners have introduced many small-scale
installations and appliances in Mali. There has not been an exhaustive and detailed monitoring and
evaluation system in place at the national level, however.
A few larger-scale projects are being piloted for electricity generation on a project-by-project basis, both
for off-grid and on-grid electrification (mainly solar PV, biofuel, and hybrid mini-grids). National estimates
could not yet be comprehensively compiled, as few new studies and national databases are available
for RE.
Preliminary cost estimates show the need for substantial investment support for the promotion of RE
in Mali.
Competitiveness of RE grid-connected generation
Grid-connected RE in Mali is traditionally large hydro whose generation cost can be as low as USD 0.07/
kWh. The importance of hydroelectricity in the national grid has lowered in recent years. This is due to
the demand increase that is being addressed by thermal power plants for reasons of faster deployment
and due to maintenance problems at the Manantali Dam that caused a lower than expected output.
Table 3 - Competitiveness of RE Grid Connected Technologies
Technology
Location
Installed capacity
(MW)
Power generated
(GWh)
Production cost kWh
(in USD)
Mini hydro on grid
power plants
Sotuba
5.7 MW
36 GWh
0.07 (average)
Large-scale on-grid
power plants
Sélingué
46.24 MW
220 GWh
Manantali
104 MW
416 GWh
Source: SREP-IP
52
Renewable Energy in Africa: MALI Country Profile
Competitiveness of RE off-grid generation
In the past 15 years Mali has begun to harness this RE off-grid potential through mainly small-scale
installations and appliances, targeting all available RE sources and building the capacity of involved
actors. These pilot schemes and various projects have yielded the following results.
Solar: Various small-scale solar thermal and PV applications have been tested and adopted to
local conditions for various uses (lighting, pumping, refrigeration, cooking, drying in farming or fruit
production, heating in health centres and in households, solar home systems for households and
community institutions, etc.). However, only a few of them have sufficient scale and/or installed capacity
for providing quality electricity supply to households and promoting productive energy uses to a wider
range of appliances relying on electricity supply41.
Hydro: A few mini-hydro projects have been under implementation for the past few years, managed
by the utility EDM SA (e.g. the 5.7 MW Sotuba hydro power plant on the Niger River). Further sites for
mini and micro hydro power plants were identified and feasibility studies were proposed to scale up this
potential as part of the SREP Program.
Biomass/biofuel: Various biomass uses have been introduced and tested in Mali, some with mixed
results in the longer term, such as domestic or community-managed biogas projects. Waste and
residues are used at both domestic and community level for composting, but mainly in agro-industrial
plants such as the Malian Textile Development Company and co-generation plants using sugarcane or
rice residues in the Niger zone. Community level bio-ethanol production using sugarcane and biodiesel
or pure vegetable oil is under implementation42. Mali also has widespread experience in Jatropha
plantations for producing biofuels used in local areas to power engines for different uses such as
Multifunctional Platforms.
Wind: For the moment, wind power is mainly used for water pumping (generator systems are few and
have low power output).
Table 4 - Off-Grid RE characteristics (2012)
Type
Quantity
Installed
Capacity
(MW)
Power
generated
(Kwc)
Power generated
in Mwh/year
Cost of Kwc
off-grid in
USD
Uses
Solar Pumps
1300
2.4
0.900
3500
16.6
Water pumping
Off-grid installations
700
0.21
0.6
360.6
11.1
Lighting, freezers, buildings
Mini grid installations
400
0.5
1.2
730
8.9
Telecommunication,
Offices, City Halls, Schools,
Hospitals, etc.
On-grid installations
None
N/A
N/A
N/A
N/A
N/A
Solar kits
130 000
5.8
75
8468
7.8
Solar kits disseminated in
households, schools, health
centres, etc.
Source: SREP-IP
41
42
The SREP expert group report justifying the selection of Mali under the SREP program in particular highlights the need to expand
and strengthen solar-based activities in Mali. This is particularly true with regards to providing energy access in rural areas, since
rural energy access is considerably lower than urban energy access. Clear opportunities exist for the increased use of solar
photovoltaic technologies for rural electrification as well as agricultural and small community and productive uses, for example for
rural medical clinics..
Currently, the ethanol produced is mainly used for industrial and pharmaceutical products.
53
Prioritization of energy investments
The GoM is committed to scaling up RE development in an equitable way. The budget it has allocated
to the RE subsector43 rose from USD 3.3 million in 2008 to USD 6.7 million in 201044, representing an
annual average increase of 41.67%. The 2011 budget was about USD 8.9 million. RE’s share of the 2010
national budget (amounting to USD 2.8 billion, including USD 488 million for energy) represented 0.23%.
In 2011, RE’s share of the national budget was about 0.30%45. Apart from the national budget, bilateral
and multilateral organizations constitute the most important source of financing for RE technologies
through public investment projects. Since the 2000s development partners have increased their support
for the development of RE through investment projects or technical assistance/capacity building efforts.
Private sector contributions to RE are currently not accounted for in national statistics. However, it is
estimated that there are more than 20 local, private operators active in the RE sector. These include
decentralized energy service companies operating a few pilot RE rural electrification schemes, and
retailers and distributers involved in the sale of electrical (mainly SHS), lighting and energy efficiency
equipment.
Foreign direct investments and clean development mechanism
No foreign direct investment in the energy sector has been recorded since the reversed privatization
of EDM. However, a few IPPs (especially with solar PV technology) are being planned with foreign
investment and should be completed in 2015.
There are two CDM projects in Mali: the first is the Félou Regional Hydro Power Project (shared with
Mauritania and Senegal) that has been approved; the second is a Jatropha reforestation project still at
validation stage. Two small-scale CDM Projects of Activities on cook-stoves are also at the validation
stage. Under the SREP program, activities are also being prepared for mobilizing carbon credits from
the Carbon Initiative for Development in relation to SREP investments.
Development aid for energy projects
Development partners operate in the country’s energy sector by supporting the GoM in focusing on
sector reforms, improving access to energy services (including rural electrification) and improving the
reliability of power generation and distribution systems. In terms of RE, multilateral and bilateral partners
invest in infrastructures covering all RE technologies, capacity building and technical assistance for key
actors (Table 5).
Development partners have started financing larger-scale RE electrification schemes (such as minigrids) with a systematic and standardized approach at the national level. This is crucial to providing
adequate quality and quantity of electricity for productive uses and job creation for transformative RE
impacts in Mali.
In terms of sector distribution of aid, the majority of assistance committed to Mali from 2000 to 2012
was in the sector of electricity transmission (42%), followed by fossil fuel power generation (27%) and
hydro (15%).
43
44
45
Consolidated figures allocated by CNESOLER and ANADEB.
Data provided by CNESOLER.
In Uganda, for example, this currently represents a little over 2% of the national budget (Source: www.climateparl.net). It is worth
mentioning that the global network, Climate Parliament, made up of inter-party legislators, recommends that at least 1% of national
budgets be devoted to RE..
54
Renewable Energy in Africa: MALI Country Profile
Table 5: On-going Renewable Energy Initiatives supported by Development Partners
Hybrid mini-grid
systems for rural
electrification
WB supports the introduction, service improvement and extension/densification of hybrid PV
solar/diesel mini-grids (SREP co-financed SHER project)
Solar
WBG supports the market development of solar lighting products and energy efficiency (SREP
co-financed SHER project)
Netherlands/GIZ support select communities for small-scale PV electricity generation
The Indian Cooperation Agency is funding a village lighting project based on SHS
Small Hydro Power
AfDB supports mini hydro development (co-financed with SREP); it will consist of the construction
of various micro/mini hydro plants and related mini-grids. Overall capacity is estimated at 21.6
MW at completion.
Biomass
AfDB supports large-scale transformation of sugar cane residuals for electricity creation and cogeneration
WB might support biofuels under the SHER project as a means to tap local RE potential
(depending on resource availability)
AFD supports biofuels on a case-by-case basis
UNDP, Gates Foundation and FAFPA are introducing bioenergy for Mali’s multifunctional platforms
Capacity building and
technical assistance
UNDP providing targeted support to women’s associations
Under the former HEURA project (World Bank), an activity program was started in 19 rural
localities called Energy for the Reduction of Gender Inequality in Mali. The SHER project will
continue its gender specific support
WB and the AfDB African Legal Support Facility provide TA for legal aspects in relation to PPA
transactions
WB is providing support to energy sector reforms, including tariffs
AfDB is supporting policy revision, as well as the improvement of the enabling environment for RE
investment through SREP and the Sustainable Energy Fund for Africa
Source: Updated from SREP-IP
Swot box
Strengths
RE is competitive for both grid-connected and off-grid
solutions
Government commitment
Donor support
Some experience in CDM implementation
Opportunities
Weaknesses
Large-scale RE PPP foreseen but not yet implemented
(hydro<10MW)
Threats
Regional interconnections
Investments opportunities
Great interest from the private sector in large IPP projects
55
VII.
56
Renewable Energy in Africa: MALI Country Profile
57
VII. RE Deployment barriers & possible mitigation
measures
RE can certainly play a stronger role in Mali and complement its traditional reliance on
large hydro. It offers a major potential that would be worth harnessing for sustainable
socio-economic development in the country. In particular, solar, mini/micro hydroelectric
schemes and bioenergy potential should be further developed and scaled up to reach
transformative impact at a national level. The general environment, both politically and
economically, and the abundance of locally available resources, makes the perspective
of wider-scale adoption positive. Some major constraints limiting a faster uptake can be
found in the financial status of the sector, in the complexity of regulations and in the local
experience with some technologies. The GoM, with the support of its international partners,
has put in place a set of mitigation measures.
Barriers and mitigation measures
To meet the country’s goal of accelerated and shared growth, the following main challenges have to be
addressed in the energy sector: (i) a successful restructuring of EDM SA to become a financially viable
and operationally efficient utility; (ii) an adequate and affordable supply of electricity by diverse sources
to meet growing demand of about 10% per annum; and (iii) sustained energy access expansion in rural
and peri-urban areas to support productive activities and to enhance social programs.
The RE sector in Mali builds on considerable experience gained through projects and programs as
well as a number of development partners active in the sector. However, the promotion of RE at a
larger scale still faces many constraints that are institutional, economic, financial, technical, social and
environmental in nature. In Table 6 barriers are summarized and linked to mitigation measures identified
during the SREP preparation phase.
Removing these barriers will help the country meet its growing demand for electricity, enhance energy
security, improve access to electricity and reduce supply cost, while substantial economic, social, and
environmental co-benefits are expected for target vulnerable groups in Mali.
Table 6: Main barriers/constraints and mitigation measures
Institutional, regulatory and legal constraints
Main barriers and constraints
Mitigation measures
Agencies and institutions operating in the energy sector
are numerous and do not always operate in synergistic
manner
Define and put in place efficient and transparent coordination
mechanisms; support the revision/updating of the mandates of
agencies and institutions actively involved in RE
Regulatory (including tariffs) and legal frameworks do
not favour RE investment by the private sector at a large
scale
Harmonize and simplify procedures and regulations concerning
the involvement of the private sector in the energy sector;
creation and/or strengthening of a favourable tariff and fiscal
system
Current political, strategic, institutional and regulatory
frameworks of the energy sector do not take into
account recent sector reforms
Update and harmonize political, strategic, institutional and
regulatory frameworks of the energy sector to take into account
recent changes
58
Renewable Energy in Africa: MALI Country Profile
Technical capacities and human capacities
Main barriers and constraints
Mitigation measures
Technical, institutional and financial capacities are still
relatively low. Low awareness of local populations for
large-scale RE applications
Initiate a systematic program aimed at building the capacities
of all stakeholders on issues related to RE (information,
sensitization, and specialized training programs)
Planning capacity, M&E and RE-related knowledge
management systems are still weak
Strengthen existing planning, M&E and RE-related knowledge
management systems, while developing the SREP approach
and modalities
The lack of adequate RE economic and technical
studies and impact assessments does not create
appropriate conditions for a robust, standardized and
programmatic approach to RE
Formulate a set of knowledge assets and products, analyses,
diagnostic studies, feasibility studies, and impact assessments
and methodological tools facilitating future RE investments
Economic and financial context
Main barriers and constraints
Mitigation measures
Heavy dependence on imports of oil (impacting on the
balance of trade, under the effects of oil price volatility) Define and implement alternative energy sector development
and low-carbon growth models
The poverty of Malian rural households leads to poor
affordability, access and use of modern RE without
subsidy schemes
Design interventions and financial/subsidy mechanisms aimed
at reducing the costs of kWh and improving access to and use
of modern RE by households and communities
Upfront investment costs of RE are relatively high
Define and put in place measures and regulations aimed at
making RE-related investments more attractive (SREP and
MDBs funding mobilizing additional financial resources); carry
out life cycle analyses to prove long-term financial viability of RE
versus thermal
Difficult return on investment, because of high
investment costs and the need for an affordable price of
kWh for poor households
Mobilization of additional funding (grants) from development
partners (to subsidize initial investment costs)
Lack of adequate and affordable financial instruments
does not sufficiently attract large scale RE-related
investments
Development of targeted financial products in cooperation with
commercial banks and concessional financing of MDBs
International private investors consider the energy
sector as a risky sector Define and put in place a range of sweeping measures aimed at
favouring private investments; provide greater guarantees and
security to private investors and define conditions to improve
PPPs for utility scale projects, such as grid-connected IPPs
Main strengths
Mali’s energy sector has many assets that will favour the development of REs. Overall, from an institutional
and political perspective, key assets include: (i) existence of core documents governing the sector and
subsector (various policies and strategies); (ii) opening of the energy sector to private operators (notably
a track record in rural energy access expansion over the last decade by decentralized energy services
companies operating in PPP with AMADER); (iii) opening of the national electricity grid to neighbouring
countries (interconnection with Senegal and Mauritania-OMVS and on-going regional interconnection
with Ivory Coast and Ghana-Burkina Faso in the context of the West African Power Pool); and especially
(iv) stated political will for the development of the sector. The GoM has also made significant progress
in sector reforms, such as the separation of the water and electricity sub-sectors, the restructuring of
the national utility EDM SA, and the opening of the electricity subsector to competition. All three actions
have contributed to an increase in the effectiveness of the energy sector as a whole, accelerating the
withdrawal of the public sector from operations and expanding service coverage.
59
Appendix
Main stakeholders’ websites and contacts
Government of Mali
http://www.primature.gov.ml
Minister of Energy
http://www.mmee.gov.ml
National Energy Directory
http://www.mmee.gov.ml/dne.php
Energy and Water Regulatory Commission
http://goo.gl/4y3hOL
National Biofuels Agency
http://anadeb-mali.org
Rural and Domestic Energy Agency
http://www.amadermali.com
Electricité du Mali SA
http://www.edm-sa.com.ml
References
• API 2011, Promotion de l’investissement privé au Mali. Opportunités pour les investisseurs dans
la filière Energie. Mise à jour: Décembre 2011. http://www.apimali.gov.ml/uploads/news/id112/
Présentation_investisseurs_Energie%20_français.pdf
• Boccanfuso, D et. al (2013) Macroeconomic and Distributional Impacts of Jatropha-based
Biodiesel in Mali. World Bank Policy Research Paper n. 6500.
• DNTCP/MF; recent trends of Mali’s major macroeconomic and financial indicators and the
2011/2012 outlook. November 2010.
• EDM SA Business Report 2010.
• EDM SA - http://www.edm-sa.com.ml/edmsa/chiffres.asp
• Gouvernement du Mali, 2011. Seconde Communication Nationale du Mali sur les Changements
Climatiques, Juin 2011.
• Gouvernement du Mali 2014-Task Force - Rapport Provisoire - Perspectives énergétiques à
court terme du réseau interconnecté - Recommandations pour le redressement de la situation
financière et opérationnelle du secteur de l’électricité pour la période 2014-2020.
• Gouvernement du Mali, Poverty Reduction Strategy Paper - Plan for the Sustainable Recovery
of Mali 2013-2014, April 2013, http://www.imf.org/external/pubs/cat/longres.aspx?sk=40508.0
• Gualberti, G., Alves, L., Micangeli, A., & da Graça Carvalho, M. (2009). Electricity privatizations
in Sahel: A U-turn? Energy Policy, 37(11), 4189–4207. doi:10.1016/j.enpol.2009.05.018
• IRENA, 2014. Mali Country Profile, data refer to 2008.
• Jake Badger et. al (2012). Estimation of Wind and Solar Resources of Mali. Unep - Risoe Center
- ISBN 978-87-92706-55-3 http://goo.gl/xeCcpW
• McSweeney, C., New, M. & Lizcano, G. 2010. UNDP Climate Change Country Profiles: Mali.
Available: http://country-profiles.geog.ox.ac.uk/ [Accessed 10 May 2014].http://countryprofiles.geog.ox.ac.uk/UNDP_reports/Mali/Mali.lowres.report.pdf
60
Renewable Energy in Africa: MALI Country Profile
• Nygaard, Ivan et. al. (2012). Agricultural residues for energy production in Mali, DANIDA contract
1711, Feasibility of RE resources in Mali. UNEP Risoe Center - http://www.frsemali.org/Biomass_
resources.htm
• SREP Mali - February 2011, Stocktaking Report.
• World Bank - World Development Indicators, accessed in April 2014.
61
NOTES
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Renewable Energy in Africa: MALI Country Profile
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MALI COUNTRY PROFILE
About the African Development Bank
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The AfDB is a multilateral development bank
whose shareholders include 54 African
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The AfDB Group’s primary objective is to
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2015